Italy govt approves 26% crypto gains tax in 2023
The Italian Parliament has given its approval for a 26% tax to go into effect on Dec. 30 for any cryptocurrency-related profits over €2,000, as reported by Cryptoslate.
According to Cryptoslate, the Italian budget for 2023 includes this new piece of legislation. Cryptocurrencies are characterised in the budget as an electronic distributed ledger-based virtual representation of value that can be held and transferred.
Additionally, tax breaks totaling €21 billion ($22.3 billion) are requested in the budget to aid the nation’s struggling households and businesses, Cryptoslate noted.
Furthermore, Prime Minister Giorgia Meloni’s administration in Italy wants to encourage crypto-asset owners to disclose their holdings. Holders who comply will be able to pay a 14% tax on their holdings as of January 2023 instead of the purchase price, which is intended to encourage compliance.
Beyond Italy, other European countries have acted to impose higher taxes on cryptocurrency gains, Cryptoslate noted. Portugal recently implemented a 28% tax on all cryptocurrency profits. The Portuguese government also plans to begin taxing free cryptocurrencies, including airdrops, at a rate of 10% and cryptocurrency broker commissions at a rate of 4%, Cryptoslate noted.
(With insights from Cryptoslate)
